ANNUAL ACCOUNTS 2002-03 POST Audit Committee
Description
Statement of accountsFOR THE YEAR ENDED 31 MARCH 2003 CONTENTS Pages Board members ……………………………………………………………………………………… 1 Foreword ……………………………………………………………………………………………… 2 Statement of the Board’s and Chief Executive’s responsibilities ………………………………. 3 Statement on the system of internal control ………………………………………………………. 4 – 5 Independent auditor’s report ……………………………………………………………………….. 6 Financial Statements: Scottish Legal Aid Fund Income and Expenditure account …………………………………………………………... 8 Statement of recognised gains and losses ………………………………………………... 8 Balance sheet ………………………………………………………………………………… 9 Scottish Legal Aid Board 10 Statement of recognised gains and losses ………………………………………………... 10 11 Cash flow statements ……………………………………………………………………………... 12 Notes to the accounts …………………………………………………………………………….. 13 – 26 SCOTTISH LEGAL AID BOARD Statement of Accounts 2002/2003 1 BOARD MEMBERS Date appointed Jean Couper (Chairman: from 1998)………………………………….……………………. April 1994 Ellen Morton…………………………………………………………………………………… December 2002 Graeme McKinstry……………………………………………………………………………. April 2002 Peter L Gray…………………………………………………………………………………… September 2002 William Gallagher……………………………………………………………………………... April 2000 Sheriff Alexander Jessop…………………………………………………………………….. April 1996 Nick Kuenssberg……………………………………………………………………………… April 1996 David J C ...
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| Publié par | Imme |
| Nombre de lectures | 62 |
| Langue | English |
Extrait
Statement o accounts
FOR THE YEAR ENDED 31 MARCH 2003
CONTENTS
Board members
Foreword
Statement of the Board’s and Chief Executive’s responsibilities
. Statement on the system of internal control
. Independent auditor’s report
.. Financial Statements: Scottish Legal Aid Fund Income and Expenditure account
... Statement of recognised gains and losses
... Balance sheet
Scottish Legal Aid Board Income and Expenditure account
... Statement of recognised gains and losses
... Balance sheet
Cash flow statements
... Notes to the accounts
..
S C O T T I S H L E G A L A I D B O A R D Statement of Accounts 2002/2003
Pages 1 2 3 4 5 6 8 8 9 10 10 11 12 13 26
BOARD MEMBERS Jean Couper (Chairman: from 1998)
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. Ellen Morton
Graeme McKinstry
. Peter L Gray
William Gallagher
... Sheriff Alexander Jessop
.. Nick Kuenssberg
David J C Nicol
... Yvonne Osman
... Professor Ian Percy CBE
.. Margaret Scanlan
... Malcolm Thomson QC
.. Alexander Wylie QC
.. AUDITORS Audit Scotland BANKERS Royal Bank of Scotland
S C O T T I S H L E G A L A I D B O A R D Statement of Accounts 2002/2003
Date appointed April 1994 December 2002 April 2002 September 2002 April 2000 April 1996 April 1996 April 2002 April 1996 April 2000 September 1997 April 1998 to September 2002
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Statement of accounts FOR THE YEAR ENDED 31 MARCH 2003 FOREWORD Principal activities The principal activities of the Scottish Legal Aid Board (‘the Board’) are to assess and where appropriate grant applications for legal aid; to scrutinise and pay legal aid accounts submitted by solicitors and advocates; collect expenses and contributions; and to advise Scottish Ministers on legal aid matte rs. Background The Board presents its accounts for the financial year ended 31 March 2003. The accounts have been prepared in a form directed by Scottish Ministers in accordance with section 5 (2) of the Legal Aid (Scotland) Act 1986, as amended by the Public Finance and Accountability (Scotland) Act 2000, and in accordance with the Executive Non-Departmental Public Bodies Annual Reports and Accounts Guidance 2002/03. The Board is a Non-Departmental Public Body established in 1987 and set up under the Legal Aid (Scotland) Act 1986 and is accountable to Scottish Ministers. A key objective for the Board is to operate within its Administration budget and to manage the Legal Aid Fund. Separate accounts have been prepared for the Legal Aid Fund (“the Fund)and for the administrative income and expenditure of the Board. Scottish Legal Aid Fund The Income and Expenditure account shows the income and net cost of operations, excluding notional charges, transferred to the General Fund is £2.555M (2002 reformatted - £0.102m). This includes the estimated value of work done on legal aid certificates outstanding as at 31 March 2003. The basis of preparation for the annual accounts (the “accruals basis) results in a number of accounting adjustments, including certain notional charges, depreciation, accruals and pre-payments. Whilst the accounts that follow indicate a surplus on the Income and Expenditure Account, this should not be taken as an indication of surplus cash balances. Where Income has been accrued, as it is received, it will be offset against the grant funding for that year. Scottish Legal Aid Board administration expenditure (grant in aid) The Income and Expenditure account on an accruals basis shows the income and net cost of operations, excluding notional charges, but including pension costs, transferred to the General Fund is £0.073m (2002 reformatted - £(0.194m)). Communication The Board produces a monthly newsletter and occasional circulars for staff covering the Board’s activities, including performance. These are discussed with staff during team briefing sessions. An employee opinion survey is carried out every two years to monitor staff views on a range of issues, such as communications, training and development, management practices, and quality of service. A Joint Consultative Committee of management and union representatives meets regularly. As an Investor in People we continue to provide our staff with the opportunities and support that they need to develop their skills in meeting the organisation’s objectives. Creditor payment policy The Board’s payment policy with regard to suppliers in respect of grant-in-aid expenditure is to agree payment terms when orders for goods and services are placed and, whenever necessary, ensure th at suppliers are aware of the Board’s terms of payment. The Board aims to comply with these terms subject to satisfactory performance by the supplier. The Board adheres to “The Better Payment Practice Code. The target turnaround time for invoices is 30 days. In 2002/03, the Board met this target in 97% of cases (2001/02 96%).
S C O T T I S H L E G A L A I D B O A R D Statement of Accounts 2002/2003
Audit Audit Scotland carried out the audit of the Board’s accounts for the 2002/03 financial year. Equal opportunities The Board is committed to providing equal opportunities in employment. No job applicant or employee is treated less favourably, on the grounds of gender, race, colour, religion, nationality, age, disability, sexual orientation or marital status. This applies in the recruitment, reward, training and promotion of both new and existing employees. It also applies to the application of grievance, disciplinary, or other procedures, the provision of employee benefits and all terms and conditions of employment. Lindsay Montgomery Chief Executive and Accountable Officer 8 July 2003 STATEMENT OF BOARD’S AND CHIEF EXECUTIVE’S RESPONSIBILITIES The Legal Aid (Scotland) Act 1986 (“the Act), as amended by the Public Finance and Accountability (Scotland) Act 2000, states that the Board is required to prepare a statement of accounts for each financial year in the form and on the basis determined by Scottish Ministers. The accounts are prepared on an accrual basis and must show a true and fair view of the Board’s state of affairs at the year -end and of its income and expenditure and cash flows for the financial year. In preparing the accounts the Board is required to: §observe the accounts direction issued by Scottish Ministers, including the relevant accounting and disclosure requirements, and apply suitable accounting policies on a consistent basis; §judgements and estimates on a reasonable basis;make §state whether applicable accounting standards have been followed, and disclose and explain any material departures in the financial statements; §prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Board will continue in operation. The Accountable Officer for the Scottish Executive Justice Department has designated the Chief Executive of the Scottish Legal Aid Board as the Accountable Officer for the Board. His relevant responsibilities as Accountable Officer, including his responsibility for the propriety and regularity of the public finances for which he is answerable and for the keeping of proper records, are set out in the Non-Departmental Public Bodies’ Accountable Officer Memorandum. The Board is responsible for the maintenance and integrity of its website. The information published on the website has been prepared under United Kingdom Company Law and m ay not be in accordance with the legal requirements of other countries from which the information can be accessed. Lindsay Montgomery Chief Executive and Accountable Officer 8 July 2003
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STATEMENT ON THE SYSTEM OF INTERNAL CONTROL 1.ACCOUNTABLE OFFICER As Accountable Officer, I have responsibility for maintaining a sound system of internal control that supports the achievement of Scottish Legal Aid Board (SLAB) policies, aims and objectives, whilst safeguarding the public funds and assets for which I am responsible, in accordance with the responsibilities assigned to me in Government Accounting. The system of internal control is designed to manage rather than eliminate the risk of failure to achieve policies, aims and objectives; it can therefore only provide reasonable and not absolute assurance of effectiveness. 2. THE BOARD AND EXECUTIVE TEAM SLAB is a non-departmental public body sponsored by the Scottish Executive Justice Department. The Board has a Chairman appointed by Scottish Ministers and consists of not less than 11 and not more than 15 members who are appointed by Scottish Ministers. Board members have reserved responsibility for determining SLAB’s strategic aims, approving its corporate plan, monitoring expenditure and operations, providing advice to Scottish Ministers and reviewing Board performance. The Executive Team comprises the Chief Executive and the directors of each of the operational and administrative functions of the Board. The Executive Team meets regularly and receives comprehensive management information to allow it to monitor and manage the Board’s performance and to report accordingly to the Board. 3. SYSTEM OF INTERNAL FINANCIAL CONTROL The system of internal control in relation to financial matters is based on a framework of regular management information, financial regulation and administrative procedures, including the segregation of duties and various levels of delegation specified by The Scottish Executive Justice Department and SLAB itself. In particular, it includes: budget is approved by the Board. annual grant-in-aid theComprehensive budgeting systems § §Regular reviews of monthly, quarterly and annual financial reports which indicate financial performance against budgets and forecasts. §Setting targets to measure financial and other performance. §Regular review by the Executive Team of comprehensive management information. §Clearly defined delegated authority and capital investment control guidelines. §Management checking and quality systems. §Quarterly updates on risk management. 4. SYSTEM OF INTERNAL CONTROL The wider system of internal control is based on an ongoing process designed to identify the principal risks to the achievement of SLAB policies, aims and objectives, to evaluate the nature and extent of those risks and to manage them efficiently, effectively and economically. This process has been in place for the year ended 31 March 2003 and up to the date of approval of the annual report and accounts and accords with appropriate guidance and best practice. As Accountable Officer, I also have responsibility for reviewing the effectiveness of the system of internal control and the following framework is in place: 4.1 The Board The Board meets monthly and monitors operational and financial performance, considers the plans and strategic direction of SLAB and considers reports from Board Committees set up to deal with areas such as Audit, Legal Services and Remuneration & Appointments. The Chief Executive and Directors also attend Board meetings. 4.2 The Executive team The Chief Executive leads an executive team made up of the directors responsible for all operational and administrative functions of the Board. The Executive Team meet at least twice per month and receives comprehensive management information on all of the Board’s operations, including information relating to risk management. 4.3 The Remuneration and Appointments Committee The Committee considers and makes recommendations to the Board on remuneration and related matters including the annual staff pay remit submitted to the Scottish Executive, remuneration and terms and conditions for the Chief Executive and Executive Directors, and pensions policies and related matters.
S C O T T I S H L E G A L A I D B O A R D Statement of Accounts 2002/2003
4.4 The Audit Committee The Audit Committee comprises members of the Board and the Chief Executive; and reports directly to the full Board. Amongst its remit is a responsibility to advise the Accountable Officer of the effectiveness of the Board’s internal control system. The Audit Committee has responsibility for assisting the Accountable Officer and the Board members to discharge their individual and collective responsibilities for ensuring that: §The Board’s financial and accounting systems are providing accurate and up to date information on the current financial position. §statements represent a true and fair reflection of this position.The Board’s published financial §for the use of public funds.The Board complies with any statutory requirements §The Board operates within agreed limits to its authority and for the use of public funds. §Board members comply with the code of conduct for NDPBs published by the Treasury. The Audit Committee receives regular reports from internal audit, to standards defined in the Government Internal Audit Manual, which include the Director of Audit’s independent opinion on the adequacy and effectiveness of SLAB’s system of internal control together with recommendations for improvement. It is also responsible for overseeing financial reporting, external audit, internal control, and Audit and Compliance Department activities. 4.5 Internal audit SLAB has an internal audit service under the supervision of the Director of Audit. Internal Audit work concentrates on areas of key activity determined from an analysis of the areas of greatest risk. These are scheduled in the annual audit activity plan approved by the Audit Committee and the Accountable Officer. The Director of Audit is responsible to me as the Chief Executive and also reports to the Audit Committee on a quarterly basis. He has direct access to Board members and to the Convener of the Audit Committee. The Director of Audit has issued an Assurance Statement to me, which provides his opinion on the adequacy and effectiveness of the internal control system and the extent to which it can be relied upon. In addition, the external auditor’s report to me and to the Audit Committee, and to the Board, any internal control issues which are identified in the normal course of their audit activities 4.6 Risk management framework SLAB has established a risk management framework, in accordance with guidance on best practice from the Treasury, Scottish Executive and relevant professional bodies, key features of which are: §SLAB’s risk management policy and control strategy has been developed to incorporate external advice and expertise in conjunction with input from experienced SLAB staff from all operational and administrative areas. §A SLAB wide risk register is maintained. It records all risks identified, is based on prioritisation of risk by ranking criteria and records actions taken to manage risks. § Directors assign individual risks to named operationalHigh level ownership of all risks is at director level. managers. §Team receives regular reports on all aspects of risk management.The Executive §Directors receive progress reports on at least a quarterly basis on risks identified within their area of responsibility and are involved in reviewing whether new risks have been identified for action. §The Audit Committee receives quarterly reports on risks identified and action taken. §The Board receives regular reports which incorporate updates on risk management initiatives such as the Cabinet Office report Successful IT: Modernising Government in Action. §ways to reduce the impact of fraud and abuse of legal aid.To pursue My review of the effectiveness of the system of internal control is informed by the work of the internal auditors and the executive managers within the departments who have responsibility for the development and maintenance of the internal control framework, and comments made by the external auditors in their management letter and other reports. Lindsay Montgomery Chief Executive and Accountable Officer 8 July 2003
S C O T T I S H L E G A L A I D B O A R D Statement of Accounts 2002/2003
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INDEPENDENT AUDITOR’S REPORT To The Members Of The Scottish Legal Aid Board, The Scottish Parliament and the Auditor General for Scotland I have audited the financial statements on pages 8 to 26 under the Legal Aid (Scotland) Act 1986. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain fixed assets and the accounting policies set out on pages 13 and 14. This report is made solely to the parties to whom it is addressed in accordance with the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice approved by the Auditor General for Scotland and for no other purpose, as set out in paragraph 43 of the Statement of Responsibilities of Auditors and of Audited Bodies prepared by Audit Scotland, dated July 2001. Respective responsibilities of the Scottish Legal Aid Board, the Chief Executive and Auditor As described on page 3 the Scottish Legal Aid Board and the Chief Executive are responsible for the preparation of the financial statements and for ensuring the regularity of expenditure and receipts. The Scottish Legal Aid Board and the Chief Executive are also responsible for the preparation of the Foreword and other contents of the Annual Report. My responsibilities, as independent auditor, are established by the Public Finance and Accountability (Scotland) Act 2000 and the Code of Audit Practice approved by the Auditor General for Scotland, and guided by the auditing profession’s ethical guidance. I report my opinion as to whether the financial statements give a true and fair view and are properly prepared in accordance with the Legal Aid (Scotland) Act 1986 and directions made thereunder and whether, in all material respects, the expenditure and receipts shown in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. I also report if, in my opinion, the Foreword is not consistent with the financial statements, if the Scottish Legal Aid Board has not kept proper accounting records, or if I have not received all the information and explanations I require for my audit. I review whether the statement on pages 4 and 5 complies with Scottish Executive guidance on statements on the system of internal control. I report if, in my opinion, it does not comply with the guidance, or if the statement is misleading or inconsistent with other information I am aware of from my audit. I am not required to consider whether the statement covers all risks and controls, or form an opinion on the effectivene ss of the Scottish Legal Aid Board’s corporate governance procedures or its risk and control procedures. I read the other information contained in the Annual Report, and consider whether it is consistent with the financial statements. I consider the implications for my report if I become aware of any apparent misstatements or material inconsistencies with the financial statements. Basis of audit opinions I conducted my audit in accordance with the Public Finance and Accountability (Scotland) Act 2000 a nd the Code of Audit Practice, which requires compliance with relevant United Kingdom Auditing Standards issued by the Auditing Practices Board. An audit includes examination, on a test basis, of evidence relevant to the amounts, disclosures and regularity of expenditure and receipts shown in the financial statements. It also includes an assessment of the significant estimates and judgements made by the Scottish Legal Aid Board and Chief Executive in the preparation of the financial statements, and of whether the accounting policies are appropriate to the Board’s circumstances, consistently applied and adequately disclosed. I planned and performed my audit so as to obtain all the information and explanations which I considered necessary in order to provide me with sufficient evidence to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or other irregularity or error, and that, in all material respects, the expenditure and receipts shown in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. In forming my opinion I also evaluated the overall adequacy of the presentation of information in the financial statements.
S C O T T I S H L E G A L A I D B O A R D Statement of Accounts 2002/2003
Opinions Financial statements In my opinion the financial statements give a true and fair view of the state of affairs of the Scottish Legal Aid Fund and the Scottish Legal Aid Board at 31 March 2003 and of the surpluses, total recognised gai ns and losses and cash flows for the year then ended and have been properly prepared in accordance with the Legal Aid (Scotland) Act 1986 and directions made thereunder. Regularity In my opinion, in all material respects the expenditure and receipts shown in the financial statements were incurred or applied in accordance with any applicable enactments and guidance issued by the Scottish Ministers. Fiona Kordiak CPFA, Chief Auditor Audit Scotland - Audit Services (East Region) Osborne House, 1/5 Osborne Terrace Edinburgh EH12 5HG 9 July 2003
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